I'm hot on a used 2018 car in another state. The bank has the title because he owes on it and just bought it 4 months ago. I want to pay with one sum with a check, essentially cash. He suggested I pay most in cash and take out a small loan to keep title issues between banks instead of a person to person arrangement. Then pay off the loan at first billing.

Would you ---

1. Do the small loan and a big check then pay the loan off at first billing assuming that he owes less than the value of the car. [car is reasonably priced, not cheap) Car price is about 5 grand over what most MB dealers would pay for it and about 3 -5 grand under Mercedes CPO retail.
2. Trust the guy to pay it off and pay him the full agreed on price and hope the title comes through quickly?
3. Pass on the deal and wait for another one from a dealer and just pay the extra value for a Certified Pre-owned.
Car is a MB AMG GLE43

Opinions appreciated.
CB

I had a similar situation when I purchased my Viper back in 2012. The owner had a loan on it. I took out a loan as well but paid it off quickly.

Here's the reason I did it this way. My loan company drove the transaction. They paid off the loan first. Once they received title to the vehicle, they then disbursed the remainder of the contract price to the owner. This put the lien on the car into their hands so if the seller became squirrely, they (read we) had recourse. If the seller backed out at this point, there would have been a mess for sure but having the bank involved and holding the lien at least made me a bit more comfortable.

They functioned much like an escrow company on my behalf and the owner received a direct check of certified funds instead of me having to pay him in cash for his portion of the contract price.

Plenty of ways to skin the cat ... just as long as the skin comes off!!! But this worked for me. Just make sure there are no penalties for paying the loan off early.

Please though, do not pay the owner the full amount and hope he pays it off.

Thanks Todd.

I just scrapped the deal for several reasons. Too many minor efforts added up to one big effort. I've switched my focus to CPO cars at Mercedes-Benz dealers in states that have no or little retail in-person restrictions and thusly trade-in possibilities. Now selection is the only hurdle.

UPDATED:

No hurry, no worries. I'm now retired. My 2010 is fine for now.
Looking for a red or brown. But will consider most any color.

2017 or 2018 GLE400
Air suspension and at least the AMG appearance is a must. Diamond design Designo quilted seats a huge plus.

2017 or 2018 AMG GLE43 SUV. No interest in a coupe. Designo seats.

2nd one might be by you

https://www.carfax.com/Used-Me...enz-GLE-43-AMG_t8836

Imagine that. You must be clairvoyant.
I bought this 2017 AMG GLE43 with 24K miles.

Sweet!

Thanks. It needs some color to wake up the off-white. Maybe some small hand painted starbursts on the front of the hood and on the back door. I'm thinking gold, silver and copper or red.